Thursday, January 12, 2023

Accounting | Question in description | Question 18

Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $44,000. If sales are expected to increase $80,000, by how much will the company's net income increase?


$36,000

$56,000

$24,000

$12,000


A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $180,000. 

The number of units the company must sell to break even is 


90,000 units. 

36,000 units. 

360,000 units. 

60,000 units.


Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials 

and direct labor $500,000, other variable costs $50,000, and fixed costs $270,000. What is Boswell's break-even point in units?


24,546

30,000

38,334

42,188


Cunningham, Inc. sells MP3 players for $60 each . Variable costs are $40 per unit, and fixed costs total $90,000.

What sales are needed by cunningham to break even?


$120,000.

$225,000

$270,000

$360,000


Cunningham, Inc. sells MP3 players for $60 each . Variable costs are $40 per unit, and fixed costs total $90,000.

how many mp3 player must Cunningham sell to earn net income of $210,000?


15,000

5,250

3,750

4,500


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